A legal structure for what you want to build.
Want to do business, invest, or organize your assets? We help you choose and form the legal structure that best fits your objective in Panama.
Do not start with the name. Start with the purpose.
Not every legal structure serves the same purpose. The decision should begin with practical questions: what do you want to accomplish, who will participate, what assets will it manage, how will control be exercised, and what do you expect to happen in the future?
At SLE Abogados, we review the objective before preparing documents so the structure is aligned with the client's actual needs from the outset.
Which of these situations is closer to your objective?
You do not need to know the legal answer before contacting us. This guide simply helps you identify a starting point.
You may be looking for a corporation.
If you want to conduct business, organize an investment, or manage a corporate project, a corporation is often the place to begin the conversation.
View the corporate option →You may be looking for a foundation.
If your main objective is to organize assets, designate beneficiaries, or plan for continuity, a foundation may be the structure to evaluate.
View the foundation option →Two structures. Two different purposes.
The question is not which one “sounds better,” but which structure more closely matches the business or asset-planning objective you want to pursue.
For business, investments, and corporate operations.
A Panamanian corporation (Sociedad Anónima) is a commercial entity with separate legal personality, governed by Panamanian law.
- Conduct permitted business or commercial activities.
- Organize investments and corporate holdings.
- Acquire and manage assets within a corporate structure.
- Define shareholders, directors, officers, and governance rules.
For organizing assets and defining how they are administered.
A Private Interest Foundation is established by dedicating assets to the purposes set out in its foundation charter and operates under a legal framework different from that of a commercial corporation.
- Asset organization and administration.
- Estate planning and asset continuity.
- Designation of beneficiaries and administration rules.
- Structuring certain assets in accordance with the foundation's purpose.
More than simply registering an entity.
Formation is only one part of the process. Our work begins earlier: understanding the project and legally organizing its essential elements.
We understand the objective
We determine whether the objective involves business, investment, asset organization, or another legal need.
We identify the structure
We analyze which type of entity may best respond to the stated objective.
We organize the roles
Participants, management, representation, and other applicable elements are defined.
We prepare the file
We organize the legal and due-diligence documentation required to move forward.
Formation and registration
The appropriate legal instruments are prepared and the entity's formal formation and registration are handled.
Keeping the entity in order
We guide you through the corporate and compliance steps that may apply after formation.
An entity's obligations do not end once it is registered.
Depending on the type of entity and its activities, corporate, registry, tax, accounting, and compliance obligations may need to be kept in good standing.
Discuss my caseCorporations and Private Interest Foundations must have a resident agent in Panama in accordance with their applicable legal framework.
The entity must keep applicable obligations in order before the competent authorities, including registration and tax status where required.
Entities subject to this regime must pay the annual corporate fee and avoid arrears that could affect their legal status.
Panamanian law establishes record-keeping and availability requirements for accounting records of legal entities, as applicable.
The resident agent has obligations related to the identification, verification, and registration of beneficial owners under current regulations.
A jurisdiction with an established corporate framework and international connectivity.
Rather than relying on generic promises, it is more useful to understand the characteristics that make Panama relevant for certain business and asset-planning projects.
Established corporate framework
Panama has specific legislation governing corporations and Private Interest Foundations.
Regional services hub
Its economy brings together financial, logistics, commercial, and professional services with regional reach.
Different legal structures
The legal framework allows business and asset-planning objectives to be organized through different legal structures.
Case-by-case tax analysis
Tax treatment depends on the activity, source of income, and the entity's specific circumstances.
Our work does not end when the entity is formed.
The value of legal guidance lies in helping you understand what you are creating, how it should be organized, and what you should keep in mind after formation.
First we understand the purpose. Then we form the entity.
That order helps avoid creating a structure simply because “it is the best known,” without first confirming whether it actually serves your objective.
Tell us about my projectFrom an idea to a legally organized structure.
The process may vary depending on the structure selected, the activity, the available documentation, and the circumstances of the participants.
You tell us what you want to accomplish and your main objective.
We review the legal structure and its initial implications.
We gather the information and documents of the people involved.
We organize formation and due-diligence documentation.
The applicable notarial and registration steps are completed.
We explain the post-formation steps the entity should maintain.
First, we need to understand your case.
You do not need to arrive at the first conversation with a folder full of documents. For an initial assessment, the most useful starting point is to define the purpose and who will be involved.
01 · Identification and due diligence ＋
Depending on the case, identification documents and the information required for client and beneficial-owner due diligence will be requested.
02 · If you want to form a corporation ＋
Among other elements, the name, corporate purpose, management structure, directors, officers, shareholders, and other information required to prepare the Articles of Incorporation will be defined.
03 · If you want to create a foundation ＋
It will be necessary to define the foundation's purposes, assets, Foundation Council, beneficiaries or the mechanism for appointing them, and the rules governing the administration of its assets.
04 · Documents issued abroad ＋
Depending on the document and procedure, authentication, apostille, legalization, or translation formalities may be required. SLE will advise you on what applies to your specific case.
Before forming a corporation or foundation.
What is the main difference between a corporation and a Private Interest Foundation? ＋
A corporation is a corporate structure used for business, commercial, or investment activities. A Private Interest Foundation is established by dedicating assets to the purposes defined in its foundation charter and follows a different asset-planning framework.
Can a foreign national form a corporation in Panama? ＋
Law 32 of 1927 allows persons of any nationality to participate in the formation of a Panamanian corporation, even if they are not domiciled in Panama, subject to the applicable legal formalities.
What is the initial endowment of a Private Interest Foundation? ＋
Law 25 of 1995 establishes an initial endowment of no less than the equivalent of B/.10,000. The way the assets are structured and administered should be reviewed according to the foundation's purposes.
Does forming a corporation in Panama mean I will not pay taxes? ＋
No. Forming a corporation does not by itself determine its tax treatment. The activity, source of income, and the obligations applicable to the specific case must be analyzed.
Do I need a resident agent? ＋
The legal framework applicable to corporations and Private Interest Foundations requires a resident agent in Panama. The role and related obligations must be maintained in accordance with current law.
What obligations apply after the entity is formed? ＋
Depending on the type of entity and its activities, obligations may include the annual corporate fee, accounting records, information updates, beneficial-owner requirements, tax compliance, and other duties.
Can I form the structure before every detail has been decided? ＋
It is advisable to define the objective and essential elements first. An initial consultation can identify what information is still needed before the formation documents are prepared.
Your legal structure should begin with the right decision.
Tell us what you want to build, manage, or protect. We can help you evaluate whether a corporation or a Private Interest Foundation better fits the objective you have in mind.
Speak with a lawyerGeneral information only. Structure, requirements, obligations, and tax treatment depend on the specific case and current law. The information on this page does not replace an individualized legal assessment.
